TeenAnalyst.com

Sector Fund
Term category: Mutual Funds
In 10 words or less:  A mutual fund that invests in a specific sector.

Definition: Sector funds that are restricted to investing in a particular sector.

Advice: These investments may prove appealing when one particular sector is greatly outperforming the market as a whole, but as long term investments they're no better than a diversified portfolio.  If you invest in one of these, expect higher volatility.

 

 

 

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